Canadian dollar has lost major ground against Sterling off the back of the news that the Remain campaign has entered into the lead. The financial markets have been pricing in the Remain victory and Sterling has managed major gains against most major currencies.
The price of oil has also been on the rise which you would of though may have been able to provide some CAD confidence however Brexit has stolen headlines. Last week oil dropped back below $50 a barrel, but has since the start of the week gone back above the supposed resistance barrier. The CAD is majorly influenced by the oil markets so any major movements in the market can have a significant effect.
With only one day to go before voting in the EU Referendum begins there could be more significant volatility. Due to the general strength for the Remain it would not be surprising to see the GBP/CAD up above 1.90 before the vote and should there be a Remain victory on Thursday the rate could be moving back towards the 2.00 level.
The uncertainty in the last few months has been caused by the fear of a Leave and whilst the polls have moved in the Remain favour there is still plenty of Leave support. It is worth considering that the polls got the last UK Election very wrong so purely believing the data could be risky. The bookies seem to be confident of a remain and the odds for a Leave have been stretched significantly since Friday.
If you’re looking to sell CAD it may be worth trying to move very quickly as the likely Remain victory could move the rate considerably against you, whilst CAD buyers could be moving into very good buying level.
If you would like any further information with regards to my forecast please send me an email at [email protected]